What type of insurance usually features low premiums and a specific payment amount upon the death of the insured?

Term life insurance is characterized by its low premiums relative to other types of life insurance and its payment of a specified death benefit if the insured passes away during the policy term. The term can range from a few years to several decades. Since it does not accumulate cash value over time and is strictly a death benefit policy, this allows for lower premiums compared to whole life, universal life, or variable life insurance policies, which have additional features such as cash value accumulation, flexible premiums, or investment opportunities.

Term life insurance is particularly appealing for individuals seeking straightforward coverage for a specific period—such as the duration of a mortgage or until children are financially independent—without the ongoing costs associated with more complex policies. This focus on death benefit without the additional elements seen in whole or universal life insurance makes term life insurance a distinct choice in providing financial security for dependents at a relatively low cost.